San Jose Contractor Flouting Multi-Million Dollar Wage Theft Violation

The second largest waste and recycling company in the world is playing chicken with the City of San Jose, in a wage theft game that’s worth 14 million dollars to the City, and nearly five million to workers.

 Republic Services was found to have been underpaying its sorters since 2011 to the tune of millions of dollars. When the City ordered Republic to pay restitution in December 2013, it found the company owed its workers $2.6 million in back wages. So far Republic is flouting  the City’s order to correct the violation, so in the year since that original order, it has shorted these workers another $2.2 million.http://thelefthook.com/wp-includes/js/tinymce/plugins/wordpress/img/trans.gif

The problem: the people who work to sort the various recycling materials from the rest of the garbage were being paid as much as $5 to $7 dollars an hour less than they were supposed to be making. When Republic signed a contract with the City of San Jose, the company agreed to pay its workers according to the City’s “living wage” policy, $15.98-$19.06 per hour.  After receiving a complaint from an employee, City officials found workers were being paid only a minimum wage of $8 to $10 an hour.

This  case is unusual only because Republic was caught in the violation. Wage theft in this country is so rampant that in 2008-2009, the $185 million that employers stole from their workers outstripped the combined $57 million stolen from all banks, gas stations and convenience stores by more than 3:1. And let’s be clear: employers like Republic Services don’t just accidentally forget to follow the law. Even though the City of San Jose has ordered Republic to correct the wage problem, so far, the company is refusing. Instead, the case has dragged out for months, with Republic claiming they’re immune from this law.

San Jose’s Office of Equality Assurance takes complaints of violations of the City’s wage policies and the one against Republic now represents up to 14-million dollars in potential fines against the company at a time San Jose coffers could certainly use it.

If Republic’s game of cat and mouse with the City ever ends, $4.8 million could go back into the pockets of 193 workers. Imagine the difference that will make in the lives of low wage workers who in many cases rely on public assistance or charity to supplement their income and make ends meet.  And think of what the City could do with $14 million which was being racked up at a time the city was cutting millions of dollars from police, fire, parks, libraries, and many other essential services.

Please sign the petition to demand Republic Services stop cheating its workers and pay what they owe.

Bob Brownstein is Director of Policy and Research for Working Partnerships USA.  Elly Matsumura is the Leadership Development Director for Working Partnerships USA.  

 

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